| |
Newsroom /
Business
/
Business
/
Shoebooks Tips To Improve Your Business Cash Flow
Shoebooks Tips To Improve Your Business Cash Flow
Poor cash flow management is in all probability the most common stumbling block for entrepreneurs. Understanding the basic concepts of cash flow and its importance will aid you plan for the unforeseen eventualities that nearly every business faces.
Hawthorn,
Victoria,
Australia
(prbd.net)
13/07/2011
A certain CEO once said that the three most important indicators for a business are customer satisfaction, employee satisfaction, and cash flow. Though many businesses do try to take good care of their customers and employees, they often fail to take good care of their cash flow.
Poor cash flow management is in all probability the most common stumbling block for entrepreneurs. Understanding the basic concepts of cash flow and its importance will aid you plan for the unforeseen eventualities that nearly every business faces.
A business' profits are of little value if they are not complemented by positive net cash flow.
Cash flow refers to the transfer of cash into and out of a business. It is the lifeblood of any business. Watching the cash inflows and outflows is one of the most critical management tasks for any business. For both business' immediate solvency and probability for growth dictates a positive cash flow.
It is quite a challenge for many small companies to keep cash flowing into the business. Here are some accounting tips to improve your cash flow situation:
Properly Manage Your Accounts
This is important in order to understand and keep track of your money movements like your expenses, revenue, and losses as well for understanding them will help your business to grow.
Trim your Inventory
Excess inventory ties up your cash. Set a time to plan a stock reduction program.
Recover Debts
Make it a regular practice and set a time to review your receivables and identify accounts that are late paying or overdue. Then, go after your receivables.
Bill Promptly
Invoicing promptly and regularly helps make certain that there is a steadier flow of cash into your business.
Save Some Cash in the Bank as Reserves
This would help cover for some expenditures when your business slows down.
Properly Manage Your Accounts Payable
Cash flow is obviously hampered by debt load, cash owed to suppliers and vendors. It is crucial for any business to keep their accounts payable in sync with the reality of their cash flows.
If Possible, Don't Hesitate to Employ a Bookkeeper
He can do the task of tracking every financial transaction of a business, including payments made and money taken in. He can also balance the books by ensuring that all income and money spent is accounted for.
Use Accounting Software
However, if hiring a bookkeeper is too much of an expense for your business, why not use accounting software that could do all the monitoring of all your business’ financial transactions and bookkeeping as well as other aspects of your business like Shoebooks Accounting Software.
Shoebooks online accounting software system is simple to use and even easier to access. It is totally web based so you can manage your business accounts from any location as long as there is internet access.
Shoebooks is an Australian provider of online accounting software solutions for SME businesses. With Shoebooks online invoicing software module, you can view specific details of your business' individual invoices, gain a general overview of sales trends, set up standard codes for your invoice line items to be used for tracking the actual cost of sales, revenue and overheads in your business readily or run off various reports and queries to analyze your business performance all at your fingertips from anywhere. Also check out the payroll software services from Shoebooks. Visit Shoebooks at http://www.shoebooks.com.au/
About
Shoebooks is an Australia-based online bookkeeping company. We offer flexible, efficient and affordable online bookkeeping solutions to any bookkeepers and business owners. We provide the simplest & most comprehensive online bookkeeping solution. We also offer bookkeeping, payroll, consulting and training services to many business enterprises. Visit Shoebooks website at www.shoebooks.com.au
|